A Business Proposition???

All is well on the financial front, however a teacher friend came to me with a business proposition that I have mulling over for the best couple of days. I think it is an excellent idea but the downside is I will lose a big chunk of my E fund.

So my friend would like for me to partner with her and open an early childcare/daycare center. My initial investment would be $10,000 for 35% ownership. We would also have to split the title of program director and work at the center 2-3 days a week from 3pm-6pm. The business plan seems solid, location is already zoned, and she is thinking about opening sometime around junish.

My concern is putting down $10,000 for only 35% ownership. Does that not seem right to you? If I am putting down $10,000 I want at least 40% ownership. Perhaps we could negotiate something like me investing $7000 for 30% ownership.

My second concern is my money being tied up for over six months with no return. The industry average for a day care center to reach profitability is 12 months (if we are lucky 7 months), however, in Philadelphia there is a waiting list at most day care centers.

This is a big risk...but this risk can change my life. From the projected income/expense it looks like I could bring in about $14000 gross my first year and then more and more the second and third year. There is the opportunity by year five for the business to grow to 2 more new center and etc. By then it should be all about the passive income!

Any advice or ideas??

until next time, think prosperous thoughts

YBP

The Joys of Being a Landlord

 Today is the fifth and as usual this is the latest my tenants can pay their rent before I charge a late fee.  

As usual I got a text saying that they had the rent.  My SO picked it up and gave them a receipt and that was that. 

Life is beautiful.  When you pick the right tenants I guess it makes the landlording thing a lot easier. 

I am ready to do it again. 

Until next time, think prosperous thoughts

YBP

Thinking about buying another investment property

I bought my house at the end of July, right in the middle of the mortgage mess. Am I happy with it? Yes! If you remember, I bought an attached single family home with a basement apartment. I rent out the basement apartment for $700.00 a month and live in the house with my significant other. My mortgage which includes an escrow for taxes and insurance is $1304.00 a month. My SO and I split the other half of the mortgage payment which comes out to $302.00 a person. That is less then what I paid for rent when I had an apartment with roommates! I love my house but I am considering moving at the end of the year or sometime in the next year.

I bought this house as an investment and would like to buy another investment while prices are so low. The best thing for me to do would be to rent out the house as well as the basement apartment. I believe I could get between $1000-1200 for the house plus between $600-700 for the apartment.

I could continue to live in this house and buy a second investment property but I want to take advantage of these very low interest rates and the best way for me to take advantage of them is as a owner occupant buyer. As an owner occupant I can put down 10-15% and still take advantage of the low interest rates.

Right now I am looking for a duplex or triplex in an area of Philadelphia where there are university students ( because I will always have a renter).

Again, I am just looking and keeping abreast on whats happening in the financial world. My plans can change.

until next time think prosperous thoughts

YBP

How Many Accounts do you have and Why?

How many accounts do you have and what are they for?

Me, I have 9... that actually seems like a lot.

They are:

1. Bank of America Checking for direct deposit and paying bills
2. Bank of America Savings I haven't used this but I think I may use this as a fund for things I have to do with my car. Putting money in there for new tires I want to buy, tune up, breaks, or any other major repairs
3. TD Ameritrade Account-Emergency Fund
4. ING Direct Checking- only used for bills having to do with the tenants or the property or when I transfer money out of my second ING savings to buy something
5. ING Direct Savings (#1) will hold the last month's rent and security for the tenants as well as 100.00 a month for vacancy/repairs
6 ING Direct Savings (#2) money in that account will be used for Christmas, vacations, etc. (right now I am debating on whether to save money for the second property I plan on purchasing in that account or just open another subaccount through ING Direct.
7. T.Rowe Price- Roth IRA account. I will probably open future mutual fund investment accounts at T. Rowe Price. I like their customer service.
8. TIAA-Cref - school district 403B
9. Part time job 401k

or wait... there's 10. I also have my school district pension fund account.

This list will eventually grow... as I acquire more properties, get married, start my own business, and have children...

but right now... these are necessities for me!

until next time, think prosperous thoughts

YBP

Searching for another property

I want another rental property... point blank period. That's just what I want. I would like to buy it before next June. By then my car loan and my two smallest student loans will be paid off and I will just be focusing on my big student loan debt. If I can find one with positive cash flow and am able to rent to a Section 8 tenant (which are on 2 year leases) then I am fine. I won't have to worry too much about a tenant not paying rent and after 1o months I will be done with my debt snowball.

sigh... but only if its in God's timing!

back to the vision board!

until next time, think prosperous thoughts

YBP